The National Association of Realtors (NAR) has tracked multi-generational homes since 2012.

In its 2020 Profile of Buyers and Sellers, NAR reported that demand for multi-generational homes increased to a high of 15% during the Covid pandemic. 

According to NAR, "Pre-pandemic there was an even split between buyers who purchased a multi-generational home for aging parents and for adult children boomeranging back or never leaving. Now the top reason to purchase a multi-generational home is for aging parents to move into the home...there are some data from consumers to support the fact that this living situation is a permanent change. While the concern of COVID-19, loneliness, or ch...

Hedge Against Inflation With These 3 Real Estate Investment Types

The annual inflation rate in the United States is currently around 7.5%—the highest it has been since 1982.1 It doesn’t matter if you’re a cashier, a lawyer, a plumber, or a retiree; if you spend U.S. dollars, inflation impacts you.

Economists expect the effects of inflation, like a higher cost of goods, to continue.2 Luckily, an investment in real estate can ease some of the financial strain. 

Here’s what you need to know about inflation, how it impacts you, and how an investment in real estate can help.

WHAT IS INFLATION AND HOW DOES IT IMPACT ME?

Inflation is a decline in the value of money. When the rate of inf...

Let's keep the numbers in perspective!

Yes, home prices have risen very fast in the last two years...
Yes, mortgage interest rates have increased noticeably...

However, look at this HOME AFFORDABILITY chart. Buying a home today is still VERY AFFORDABLE compared to years past...

• New addition to your family? Need more space?
• Rent going up with no end in sight?
• New job with better pay?

Start your home buying process now!
Use your tax refund for a down payment.

Call/text us at 843-900-0155 to get started.

The Alan Donald Team at Keller Williams Realty
Professional Service | Local Expertise | Advanced Technology
BuyHomesInCharleston.com

Homeowners are Sitting on Record Equity, So Here’s How to Cash Out When Mortgage Rates are Rising

During the last year, home prices rose, making many Americans house rich.

By the end of the third quarter, borrowers had a record $9.4 trillion in tappable home equity collectively, or an average of $178,000 per borrower, says Black Knight.

When tapping those dollars, it’s best to consider your whole financial picture, including current debt amount and associated interest rates, how much you’re looking to borrow, available HELOC vs. cash-out rate offerings, and the timeline for paying off the additional debt.

But with 24% of all first-lien mortgages with an interest rate below 3%, cash-ou...

Corelogic (R) reported in their latest Homeowner Equity Insights that U.S. homeowners with mortgages have seen their equity increase by a total of nearly $2.9 trillion since the second quarter of 2020, an increase of 29.3% year-over-year.

Source: CoreLogic

Get your HOME EQUITY estimate today!

Our residential ACTIVE inventory in the Charleston, SC MLS has increased by more than 25% since its low point in May.

It appears that our "sizzling hot" market momentum has indeed TURNED AROUND!

Will home prices start falling? Unlikely - for a while! We have such low inventory that if demand keeps steady, it will take about 3 times the current inventory for prices to start to drop.

However, the rate of price increases will start decelerating (we're downshifting from fourth gear into third gear!). Buyers will have a little more leverage and a few more choices moving forward.

Were you waiting for the "top of the market" to sell your home?

This is it!

Call/text 843-900-0155 or DM m...

If you’re searching for drama, don’t limit yourself to Netflix. Instead, tune in to the real estate market, where the competition among buyers has never been fiercer. And with homes selling for record highs,1 the appraisal process—historically a standard part of a home purchase—is receiving more attention than ever. That’s because some sellers are finding out the hard way that a strong offer can fizzle quickly when an appraisal comes in below the contract price. Traditionally, the sale of a home is contingent on a satisfactory valuation. But in a rapidly appreciating market, it can be difficult for appraisals to keep pace with rising prices.

Thus, many sellers in today’s market favor...

Should I Move or Refinance?

The level of equity homeowners have is at an all-time high. According to the U.S. Census, over 38% of owner-occupied homes are owned free and clear, meaning they don’t have a mortgage. Those with a mortgage are seeing their equity skyrocket too. Every time real estate values increase, homeowners get a dollar-for-dollar gain in their home equity.

According to the first-quarter 2021 U.S. Home Equity Report from ATTOM Data Solutions:

“17.8 million residential properties in the United States were considered equity-rich, meaning that the combined estimated amount of loans secured by those properties was 50 percent or less of their estimated market value.

The c...

Nexton, one of the leading edge planned communities in Charleston, SC had fabulous growth in 2020 and has become the "poster child" for master-planned communities in the U.S. The developers of Nexton want to provide an environment where residents can work play and interact without leaving the community. Nexton is owned by North America Sekisui House, LLC (NASH), and is developed by Newland Company. Both companies share a deep commitment to sustainable development practices and apply these core values to the vision, planning, and development of the project.

To achieve this, they have carefully planned a mix of cutting-edge commercial office buildings, retail shops, restaurants, apartmen...

The housing market recovery coming into the new year has been nothing short of remarkable. Many experts agree the turnaround from the nation’s economic pause is playing out extremely well for real estate, and the current market conditions are truly making this winter an ideal time to make a move. Here’s a dive into some of the biggest wins for homebuyers this season.

1. Mortgage Rates Are Historically Low

In 2020, mortgage rates hit all-time lows 16 times. Continued low rates have set buyers up for significant long-term gains. In fact, realtor.com notes:

“Given this means homes could cost potentially tens of thousands less over the lifetime of the loan.”
Essentially, it’s less expensiv...

What Is Title Insurance? 

Insurance is one of those costs that no one likes to pay. But we pay insurance premiums to be able to sleep well at night, without major financial concerns. There are many types of insurance products including home (hazard insurance), health insurance, life insurance, flood insurance and title insurance. 

What is Title Insurance?

Although title insurance is normally issued at every closing, many buyers are not aware of what it is or how it works. Knowledge is power, and learning more about Title Insurance can save you hundreds of dollars at closing and even worse headaches and costs if title problems arise later. 

TITLE INSURANCE protects the owner (or the ...

Quick real estate update from Charleston, SC.

Our residential market continues to be "very hot". Up by 13.9% in terms of number of homes sold in the last 12 months compared to the previous 12 months. Up by 16.3% in median home price since last year. And down by 47.1% in inventory!

Our market is very under-supplied! It appears that low interest rates have stimulated demand and the COVID pandemic and the election only fueled it, while not many people are willing to sell.

Home Sellers: Did you know you may have to negotiate your home up to three times? Anyone can sell a home in this market. But not everyone can get a top market price after all three negotiations are said and done.

Home B...

This email I received from The Economist Intelligence Unit is a bit scary. I doubt the US economy will be spared, or that Charleston will be fully insulated from this worldwide slowdown. This is going to affect us, whether we like it or not!

If you are THINKING of selling your home in the next 2 years, consider selling it NOW instead to get a top market price. Demand is very high and supply very low. Book a VIRTUAL APPOINTMENT at bit.ly/BUYSELLVIRTUAL or call/text 843-900-0155.

When the rubber hits the road we will likely see an increase in inventory and very probable price decrease for residential real estate.

However, if you are a long-term planner, or you are buying a home to live...

"Should I Buy a House During the Coronavirus Crisis?"

That's the most common question from today's buyers. To answer this question, I will need to consider:

How long do I plan to stay in this home?

The graph shows that the median home tenure in the U.S. is now 9-10 years. If you plan to sell/flip in 1-2 years, the answer is probably "not a good time, too much risk". But if you plan to stay longer than 4 years, the market has time to correct from a recession and the answer is "yes".

Will a COVID recession precipitate a crash in the housing market?

It's possible, but not likely. A crash is the result of sudden oversupply. As the graph shows, in 3...

Will Your Remodel Pay Off? The Best (and Worst) Ways to Spend Your Budget

Most new homeowners have something about their property that they want to change. And as family needs and design trends shift over time, many will eventually choose to remodel. Some homeowners make updates to their property before listing it to maximize their potential sales revenue. Whatever your reasons are for taking on a home improvement project, it’s wise to consider how the money you invest will impact your home’s value. We’ve taken a look at six popular home renovations and identified those that—on average—have the best and worst returns on investment. So before you lift a hammer or hire a contractor, take ...

Last week Realtor.com released the results of a survey that produced three major revelations:

• 53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur this year or next.
• 57% believe the next recession will be as bad or worse than 2008.
• 55% said they would cancel plans to move if a recession occurred.

Since we are currently experiencing the longest-ever economic expansion in American history, there is reason to believe a recession could occur in the not-too-distant future. And, it does make sense that buyers and sellers remember the horrors of 2008 when they hear the word “recession.”

Ali Wolf, Director of Economic Research at th...

When searching for a home, you may end up selecting a property in a community with a Homeowners Association (HOA). Before you buy, it’s important to know how HOAs work and what they mean for you.

According to a recent article on Realtor.com,

“In a nutshell, an HOA helps ensure that your community looks its best and functions smoothly…The number of Americans living in homes with HOAs is on the rise, growing from a mere 1% in 1970 to 25% today, according to the Foundation for Community Association Research.”

An HOA is governed by a board nominated by the homeowners in the neighborhood. It is designed to make sure the residents have a support structure to maintain the value of the communi...

If you are considering a home purchase, you need to know the advantages and disadvantages of owning a home. Here are some of the disadvantages for your consideration:

When you have been renting for a long time, it can be difficult to make the decision to purchase a home.

Consider these advantages of being a homeowner:

A friend of mine sent me this article from the Wall Street Journal that I found very interesting and right on the money!

A Growing Problem in Real Estate: Too Many Too Big Houses

Baby boomers and retirees built large, elaborate dream homes across the Sunbelt—only to find that few people want to buy them.

Large, high-end homes across the Sunbelt are sitting on the market, enduring deep price cuts to sell.

That is a far different picture than 15 years ago, when retirees were rushing to build elaborate, five or six-bedroom houses in warm climates, fueled in part by the easy credit of the real estate boom. Many baby boomers poured millions into these spacious homes, planning to live o...